Dynegy exits trading and cuts jobs
Dynegy became the latest big-name US energy company to confirm its withdrawal from the worldwide energy-trading arena in October, as attempts to find a partner for its trading business failed.
Dynegy has been one of the energy companies hit hardest by the collapse in credit quality, share price and overall confidence in the energy-trading sector. Since its failed attempt to buy Enron in December 2001, it has seen its share price tumble from $46 to below $1, closed its online trading platform Dynegy Direct, and in September paid the US Securities and Exchange Commission a $3 million fee over charges it inaccurately accounted for a $300 million natural gas transaction and engaged in “wash trades” – a trade where two parties buy and sell contracts at the same price to inflate the size of their trading books.
The job cuts and withdrawal from trading are part of a wider restructuring programme that the company hopes will improve operating efficiencies. Dynegy will reorganise its operations into four distinct business units, covering power generation, natural gas liquids, regulated energy delivery and network communications. The four units will report to a corporate head office based in Houston.
Dynegy’s interim chief executive, Dan Dienstbier, said: “The objective of the restructuring is to maximise the potential and profitability of our existing operating divisions by requiring each business unit to develop its own strategy.”
Job cuts are also looming at Duke Power, the generating arm of North Carolina-based Duke Energy. A spokesman said the company will cut “hundreds” of staff over the next few months due to a slowing economy, improved use of technology and centralisation of business operations. Duke Power employs about 10,000 staff.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on People
People: Isda taps four new directors, O’Callaghan joins CA, Berlinski quits Goldman, and more
Latest job changes across the industry
People: Citi snags Raghavan, SocGen bags Estrada, all change at NYCB, and more
Latest job changes across the industry
Kane to leave Citadel Securities for senior Miax role
Options exchange has been on a four-year acquisition spree
Asia moves: senior hires at Millennium, Citi, SMBC and more
Latest job news from across the industry
Ken Pang set to join Millennium as Asia equities head
Former Credit Suisse markets co-head joins hedge fund’s Hong Kong office
People: Risk shake-up at Santander, JPM juggles markets, and more
Latest job changes across the industry
People: UBS rejigs EQD, risk head departs; Rustad joins buy side, and more
Latest job changes across the industry
Rustad re-emerges at Taula Capital
Former JP Morgan clearing head to help prepare for Q2 fund launch